Merchant bank Quayle Munro has reported a six per cent drop in turnover and and a loss of £0.5 million for the first half of the current financial year.

Revenues fell slightly to £5 million for the six months to December 31 compared to £5.3 million at the same point the previous year.

The bank said it closed a “number of significant deals” in the first half, including the successful purchase of Northern Rock by Virgin Money, which Quayle Munro advised on through the Virgin Group.

Quayle Munro is understood to have been approached recently to advise on the £800 million sale of energy research specialist Wood Mackenzie.

The bank is reported to have been asked to undertake a strategic review of Wood Mac as a result of interest from US bidders.

Morris Homes, in which Quayle Munro has a 22.9 per cent shareholding, reported stronger sales and operating profits in the nine months to December 31, with turnover up 23 per cent to £101 million and operating profits up 27 per cent to £14 million.

Quayle Munro, which has offices in Edinburgh and London, described the first half results as a “credible outcome in difficult market conditions”.

Chairman Andrew Tuckey said: "The business is well capitalised and in a strong position to meet the current market challenges.

“We are encouraged by the good pipeline of new business and the strength of our dedicated team and we expect a satisfactory result for the year.”

Quayle Munro said its group assets at the end of the first half were £39.7 million, equivalent to 870 pence a share – down four per cent on last year.

And Tuckey, who announced today he is to step down from his role as chairman of the bank later this year, warned the full year revenues are unlikely to match the £14.7 million reported for last year.

He said: “After two record years and taking account of current market conditions and the difficulty in anticipating the timing of deal completions, I think it is unlikely our revenues for the current year will match those of last year.

“However, with a good pipeline of new business and a strong and dedicated team in both our offices, we expect a satisfactory result for the full year.”

Andrew Adams, who joined Quayle Munro following its acquisition of van Tulleken in 2008, has been named as the bank's new chief executive today.

Tuckey will stay with the bank as a senior adviser, and Quayle Munro said it is now looking for a new independent non-executive chairman to replace him.

Three senior executives have also left the bank in the first half.

Managing director of the bank's corporate finance advisory business Stuart Roberts left to join Robertson Group, a longstanding client of Quayle Munro, as its new group finance director.

Andreas Wesemann, who led the Virgin Group advisory team for a number of years, has left to work with former colleagues.

And Rashmi Sinha, managing director of corporate finance, has left to pursue business opportunities in the retail sector.